# Executive summary

## The first V4-native reflection token

TITHE is an ERC-20 token paired with a Uniswap V4 hook on Ethereum mainnet. Every swap on the official TITHE/ETH pool sends 4% of trade volume — collected entirely in ETH — to existing holders. An additional 1% funds the treasury that maintains the project. Wallet-to-wallet transfers are untaxed; the fee only activates when someone trades against the pool.

## The category, and why it broke

Reflection tokens — SafeMoon and its descendants — were one of the most demanded mechanics in the 2021 retail wave. They paid passive yield to holders simply for holding. The pitch worked. The implementation did not.

The mechanic lived inside the ERC-20 contract itself by overriding `transfer()`. That had four structural consequences:

1. **Composability collapsed.** Most DeFi protocols expect `transfer(amount)` to move `amount`. Reflection tokens moved less, breaking integrations across DEXes, lending, bridges, and aggregators.
2. **Rebasing balances broke accounting.** Holder balances changed without on-chain transfers, silently desyncing any contract tracking them.
3. **Wallet-to-wallet was taxed.** Sending the token to your own cold wallet, to a friend, or to any contract triggered the fee. The mechanic could not distinguish trades from movements.
4. **The team controlled the tax.** Fee rates, exempt addresses, and distribution rules typically lived in owner-controlled functions. The rug surface was permanent.

The category died not because the demand disappeared but because the architecture made the tokens incompatible with the rest of crypto.

## The fix

Uniswap V4 introduces **hooks** — contracts attached to a specific pool that can execute logic before and after swaps, including modifying the swap deltas. This makes it possible to move the entire reflection mechanic out of the token contract and into the pool itself.

TITHE takes this approach. The architecture is split across three contracts:

* **TITHE (ERC-20)** — vanilla token, fully composable with all of DeFi. One minor override exists for reward settlement; transfer logic is untouched.
* **CustomHook** — a V4 hook attached to the TITHE/ETH pool. Skims 5% of the ETH side of every swap, routes 4% to the distributor and 1% to the treasury, and enforces permanent LP lock.
* **RewardDistributor** — a separate, claimable ETH vault. Tracks a global reward index, lets holders pull their accrued ETH at any time, proportional to their TITHE balance.

The token is composable. The hook is ownerless. The distributor is pull-based. None of the three contracts can be upgraded, paused, or modified by anyone — including the deployers.

## Why this matters

Past reflection tokens asked you to trust the team not to change the tax, not to drain the pool, and not to deploy hidden exempt wallets. TITHE asks you to trust the bytecode. Every parameter that mattered — fee rate, fee split, LP lock, supply cap — is mathematically unchangeable post-deployment.

What we built is the same demand the category had in 2021, expressed through the architecture that makes it actually work.

> **Reflections, redeemed.**


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